Joyoung(SZ:002242) GOLDEN SUN SECURITIES·2025-09-01 08:43Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a decline in revenue and net profit for the first half of 2025, with revenue at 3.99 billion and a net profit of 120 million, representing a year-on-year decrease of 9.1% and 30.0% respectively [1] - The company’s profitability is expected to recover gradually, with projected net profits for 2025-2027 at 365 million, 404 million, and 439 million, reflecting significant growth rates of 198.0%, 10.7%, and 8.7% respectively [3] Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 3.99 billion, down 9.1% year-on-year, and a net profit of 120 million, down 30.0% year-on-year. The adjusted net profit excluding non-recurring items was 190 million, down 11.5% year-on-year [1] - For Q2 2025, revenue was 1.99 billion, a decrease of 14.4% year-on-year, with a net profit of 20 million, down 53.2% year-on-year [1] Product and Regional Performance - By product category in H1 2025, revenue from food processing machines, nutrition pots, and Western-style electrical appliances was 1.43 billion, 1.84 billion, and 850 million respectively, with growth rates of 13.6%, 4.7%, and a decline of 10.0% [2] - In terms of regional performance, domestic revenue was 3.56 billion, up 4.7% year-on-year, while overseas revenue was 830 million, down 9.7% year-on-year [2] Profitability Metrics - The gross margin for H1 2025 was 27.2%, down 0.9 percentage points year-on-year, while the net profit margin was 3.1%, down 0.9 percentage points year-on-year [3] - The company’s operating expenses showed mixed results, with sales expenses decreasing by 0.9 percentage points and management expenses increasing by 0.2 percentage points in H1 2025 [3] Future Outlook - The company is expected to see a recovery in profitability, with net profit forecasts for 2025-2027 indicating a strong rebound in 2025 followed by moderate growth in subsequent years [3]